Opportunity cost

When you finish this chapter, you should: Define the key terms of economics and opportunity cost and understand how a production possibilities frontier exemplifies the trade-offs that exist in life, distinguish between increasing and constant opportunity cost and understand why each might happen in the real world, analyze an argument by thinking economically, while recognizing and avoiding logical traps.

(BQ) Part 1 book "Macroeconomics for today" has contents: Introducing the economic way of thinking; production possibilities, opportunity cost, and economic growth; market demand and supply; markets in action; gross domestic product; business cycles and unemployment,...and other contents.

(BQ) Part 1 book "Survey of economics" has contents: Introducing the economic way of thinking; production possibilities, opportunity cost, and economic growth; market demand and supply; markets in action; price elasticity of demand; production costs; perfect competition,...and other contents.

In this chapter you will learn that economics is about the allocation of scarce resources, examine some of the tradeoffs that people face, learn the meaning of opportunity cost, see how to use marginal reasoning when making decisions, discuss how incentives affect people’s behavior...

In lecture Principles of economics - Chapter 5 you will: Examine what items are included in a firm’s costs of production, analyze the link between a firm’s production process and its total costs, learn the meaning of average total cost and marginal cost and how they are related, consider the shape of a typical firm’s cost curves, examine the relationship between short-run and long-run costs.

In this chapter you will learn about some typical reasoning problems people have when they make decisions. You will learn that the most important cost to consider is opportunity cost, and that marginal cost should be used when applying the cost-benefit principle.

Chapter 1 - The power of economics. In this chapter you will learn: Explain the economic concept of scarcity, explain the economic concepts of opportunity cost and marginal decision making, explain the economic concept of incentives, explain the economic concept of efficiency, distinguish between correlation and causation, list the characteristics of a good economic model, distinguish between positive and normative analysis.

Chapter 1 - The challenge of Economics. After reading this chapter, you should be able to: Explain the meaning of scarcity, define opportunity cost, recite society’s three core economic questions, discuss how market and command economies differ, describe the nature of market and government failure.

In this chapter you will: Examine what items are included in a firm’s costs of production, analyze the link between a firm’s production process and its total costs, learn the meaning of average total cost and marginal cost and how they are related, consider the shape of a typical firm’s cost curves, examine the relationship between short-run and long-run costs.

(BQ) Part 1 book "Principles of microeconomics" has contents: Introduction, production possibilities and opportunity costs, elasticity, happiness, utility, and consumer choice, demand and supply, price ceilings and price floors, entrepreneurship and business ownership, costs of production, maximizing profit,...and other contents.

(BQ) Part 1 book "Macroeconomics for today" has contents: Introducing the economic way of thinking; production possibilities, opportunity cost, and economic growth; market demand and supply; markets in action; gross domestic product; business cycles and unemployment,...and other contents.

Lecture Element of economics - Chapter 1: Introducing economics. At the end of this lecture, students should be able to: Define economics, identify the sources of economics problems, define opportunity cost, define production and possibility frontier, differentiate between positive and normative economics, differentiate between micro and macro economics, to know the different types of economic systems.

Where we are now?
The growth environment of early 2008 has changed to cost containment in 2009 Real Estate costs are often the second largest expense for Companies – typically behind labour In a contracting economy, an aggressive occupancy cost reduction plan can mean the difference between success and survival Following headcount reduction activities over the last 6 months, some corporate occupiers are carrying a significant amount of vacant space Market conditions have given rise to new opportunities for restructuring leases...

CHAPTER 12 Relevant Costing
After completing this chapter, you should be able to answer the following questions:
What factors are relevant in making decisions and why?
How do opportunity costs affect decision making?

It is important to note that the requirements for sustainability condi-
tions vary by subsection because they are inherently different. In par-
ticular, these requirements to create sustainability may be more difficult
to achieve in practice in water and sanitation, in drainage, and in the
transportation subprojects than they are in building schools or clinics.

This is the cost of raw materials and goods bought for resale which you used
during this accounting period. Make sure you count creditors, that is items
delivered to you but which you had not paid for at the end of the period.
Do not count items you paid for in this period if they were included as
creditors in your last accounts.
You should include the value of stock you had on hand and uncompleted
work in progress at the start of the period (this must be the closing figure
which you used in your last accounts), but exclude the value of stock and
work in progress...

After studying this chapter you will be able to understand: Explain what makes information relevant to a particular business decision; discuss the relevance of opportunity costs, sunk costs, and out-of-pocket costs in making business decisions; use incremental analysis in common business decisions;...

Chapter 1 - Managers, profits, and markets. After studying this chapter you will be able to: Explain the role of economic theory in managerial economics, contrast routine business practices (or tactics) with strategic decisions, list seven economic forces that influence the long-run profitability of firms, measure the explicit opportunity cost of using market-supplied resources to produce goods or services,...

Chapter 9 - Incremental analysis. After studying this chapter, you should be able to: Identify the steps in management’s decision-making process, describe the concept of incremental analysis, identify the relevant costs in accepting an order at a special price, indicate the relevant costs in a make-or-buy decision,...

Chapter 1 - Managers, profits, and markets. After studying this chapter you will be able to: Explain the role of economic theory in managerial economics, contrast routine business practices (or tactics) with strategic decisions, list seven economic forces that influence the long-run profitability of firms, measure the explicit opportunity cost of using market-supplied resources to produce goods or services,...